Cooper Tire's Proposed Sale to Indian Rival Losing Air

Cooper Tire & Rubber Co.'s sale to Apollo Tyres Ltd.—one of the biggest takeovers of a U.S. company by an Indian concern—is facing opposition as workers at Cooper's U.S. and Chinese factories have raised hurdles that threaten the $2.5 billion deal.

Cooper Tire, which is based in Findlay, Ohio, on Thursday said it is "assessing its options" as a result of a U.S. arbitrator's ruling that bars the sale or transfer of two of its three U.S. tire plants without a new labor contract. The companies "remain...